An institutional theory of quality outcomes in strategic supply chain partnership

Abstract

Purpose – The purpose of this paper is to develop a theoretical base for buyer-supplier quality outcomes (in the context of a strategic partnership) from the institutional theory of the firm. It examines quality outcomes within a partnership and demonstrates how the partners’ quality outcomes are related. Design/methodology/approach – The paper examines quality outcomes within a strategic supply chain partnership (buyer-supplier) and demonstrates how the partners’ quality performance are related. Correlation analysis is used to examine the research hypothesis. Findings – Utilizing the institutional theory and stakeholder theory of the firm, it is argued that within a strategic partnership, the quality outcomes of the partners are significantly related. By focusing on a strategic alliance within a strategic group in the US airline industry, it is shown that there is a significant relationship among quality outcomes of the partners within the strategic alliance. Research limitations/implications – The analysis was limited to only one strategic partnership. Future research should examine quality outcomes among multiple strategic partnerships in order to validate the findings of this study. Originality/value – The study discusses the importance of strategic alliances and networks of firms as determinants of firm quality performance.